T. Rowe Price Growth & Income Fund (PRGIX)
Ticker Symbol:
PRGIX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Management
Fund Manager
  • Thomas J. Huber
  • Managed Fund Since: 03/01/2007
  • Joined Firm On 07/29/1994*
  • B.S., University of Virginia; M.S., University of Wisconsin

*Firm refers to T. Rowe Price Associates and Affiliates
Quarterly Commentaries
as of 03/31/2013

U.S. equities posted strong gains in the first quarter, with several indexes hitting multiyear highs. Stocks advanced despite domestic fiscal uncertainty and eurozone instability as the U.S. economic recovery continued to grind ahead, buoyed by improvements in the housing and employment markets. The Federal Reserve's accommodative monetary policy and heightened merger and acquisition activity provided further support. The positive sentiment was tempered by concerns about higher taxes and budget sequester in the U.S., while an Italian election stalemate and a controversial bank deposit tax in Cyprus highlighted the eurozone's ongoing challenges. The traditionally defensive health care, consumer staples, and utilities sectors fared best, while materials and information technology shares lagged. Mid- and small-cap shares outpaced large-caps, although all ranges gained.

The Growth & Income Fund returned 9.62% in the quarter compared with 10.61% for the S&P 500 Index and 10.54% for the Lipper Large-Cap Core Funds Index. For the 12 months ended March 31, 2013, the fund returned 12.31% versus 13.96% for the S&P 500 Index and 14.00% for the Lipper Large-Cap Core Funds Index. The fund's average annual total returns were 12.31%, 5.49%, and 8.22% for the 1-, 5-, and 10-year periods, respectively, as of March 31, 2013. The fund's expense ratio was 0.71% as of its fiscal year ended December 31, 2011.

For up-to-date standardized total returns, including the most recent month-end performance, please click on the Performance tab, above.
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares.

Benchmark Definitions

The industrials and business services sector accounts for the portfolio's largest overweight versus its benchmark. We favor businesses with diversified operations, high gross margins, attractive valuations, and durable long-term growth prospects that should thrive even after the cyclical upturn fades. We believe health care is among the most attractive of the traditionally defensive sectors. We seek stocks that can generate strong and consistent growth regardless of government reform efforts or the overall economy and can capitalize from a rebound in utilization as the economy recovers. We also favor firms that offer innovative, solutions-driven health care or unique therapeutic benefits and believe opportunities exist for companies that can provide products or services that reduce health care costs.

We continue to position the portfolio for modest economic growth in 2013, supported by accommodative monetary policy and recent improvements in the housing and employment markets. Investors' preference for established, dividend-paying companies benefited the strategy during the quarter, and the environment for equities still appears generally favorable. Corporate balance sheets are in outstanding condition, and recent tax hikes on capital gains and dividend income were not as significant as some had anticipated. Stock valuations remain reasonable relative to fixed income and cash alternatives. Regardless of prevailing tax policies or the economic environment, our investment approach remains the same: We look to buy and hold high-quality growth companies with strong earnings and cash flows that offer a combination of capital appreciation and income growth for our clients.

See Glossary for additional details on all data elements.